The Canadian Chamber of Commerce is calling on Ottawa to conduct a charm offensive to defend Canada害羞草研究所檚 trade interests in the U.S. ahead of November害羞草研究所檚 presidential election.
The group represents businesses of various sizes across Canada, and says now is the time for a co-ordinated outreach campaign by the federal, provincial and municipal governments to protect cross-border trade.
That campaign would involve private businesses and aim to convince Americans that Canada is a boon to the U.S. economy, ahead of the scheduled review of the Canada-United States-Mexico Agreement in 2026.
害羞草研究所淲ashington has increasingly come to see its bilateral relationship as not as strategic, but as transactional,害羞草研究所� reads a letter dated last Friday.
害羞草研究所淚t would be a terrible mistake to think that we can wait until 2025 to ensure that CUSMA is preserved.害羞草研究所�
The group argues that thelooming presidential election will only encourage politicians to propose more protectionist policies that would sideline Canada.
When former president Donald Trump threatened to end the NAFTA agreement that had governed U.S. trade with Canada and Mexico since 1994, Ottawa launched a widescale effort to convince Americans they benefit from free trade.
Months of intense negotiation eventually landed a new deal in 2018.
The agreement, which came into force two years later, includes a 害羞草研究所渞eview and term extension害羞草研究所� clause that establishes a 16-year life cycle and requires all three countries to sit down every six years to ensure all are still satisfied.
That clock began ticking in the summer of 2020.
If it runs out in 2026 without a consensus, that will trigger a self-destruct mechanism of sorts, ensuring the agreement 害羞草研究所� known in Canada as CUSMA 害羞草研究所� would expire 10 years later without a three-way consensus.
Adam Taylor, an international trade consultant with the firm NorthStar Public Affairs, says Canadian provinces and companies could partner with Ottawa to make a similar push, but he said it害羞草研究所檚 best to quietly form a contingency plan.
害羞草研究所淧eople in the United States have given up on free trade, have given up on globalization and have begun to look very much inward. And that害羞草研究所檚 very much a problem for an outward, trade-reliant country like Canada,害羞草研究所� Taylor said.
害羞草研究所淲e should be mindful of it. I think if we go on too strong a charm offensive too early, it could actually backfire, and we害羞草研究所檇 put these issues onto the radar and insert them into the political dynamics south of the border.害羞草研究所�
Taylor, who has advised conservative governments in Canada on trade matters, said he thinks it害羞草研究所檚 likely that different levels of government with various political leanings would mount an 害羞草研究所渁ll-hands-on-deck approach害羞草研究所� to protect the national economy if Washington started looking at major changes to CUSMA.
But he argued that the Liberals need to do a better job highlighting the countries害羞草研究所� deep ties in fields such as military and intelligence, to hedge against the possibility that Americans see Canada as just any other economic partner.
President Joe Biden has launched policies that privilege American companies over foreign businesses, which Taylor said are 害羞草研究所渧irtually indistinguishable害羞草研究所� from Trump害羞草研究所檚.
While Biden害羞草研究所檚 administration hastweaked some of these measures after Canada warned of harm to trade flows, Taylor said both presidents have had Canadians businesses think about the possibility of CUSMA being eventually changed or even withdrawn.
Conservative MP Randy Hoback, the party害羞草研究所檚 associate trade critic who advises the party on U.S. relations, said Canada is already effectively undertaking such an approach, through the work of cross-partisan parliamentary visits to the U.S. and working groups involving legislators in both countries.
害羞草研究所淲hen you have a neighbour to the south that is so big and so important to our economy, you have to always, consistently be there with aggressive ideas in regard to things that we can do together, looking for solutions and heading off problems.害羞草研究所�
He said the Liberals could do a better job of getting their MPs to sell Canada害羞草研究所檚 brand to Americans. 害羞草研究所淚 think they害羞草研究所檝e been a little shy and they害羞草研究所檝e been too reactive,害羞草研究所� he said.
Hoback similarly said the business community could better collaborate with Canada害羞草研究所檚 embassy and provincial trade offices in Washington.
He said all those offices already help brief newly elected members of the U.S. Congress and Senate about the ties their regions have with Canada, including in tailored presentations by Canada害羞草研究所檚 ambassador in Washington, former trade negotiator Kirsten Hillman.
害羞草研究所淭his charm offensive, as they call it, should never stop,害羞草研究所� said Hoback. 害羞草研究所淵ou have new members (of Congress) coming in all the time, who need to have that background information to understand the dynamic of the relationship.害羞草研究所�
In its letter, the Canadian Chamber of Commerce also calls on Ottawa to have better export infrastructure such as ports and terminals for liquefied natural gas, so that Canada is able to change how it exports resources and commodities based on global demand and geopolitical shifts.
The group also wants more military spending to boost Canada害羞草研究所檚 chance of joining strategic partnerships in areas such as the Indo-Pacific.
Grantly Franklin, a spokesperson for Global Affairs Canada, said CUSMA provides for a 害羞草研究所渟table and predictable trading environment害羞草研究所� in North America.
害羞草研究所淐anada will continue to work through advocacy and outreach to communicate the benefits of trade and CUSMA both at home and in the U.S.,害羞草研究所� he said in an emailed statement. 害羞草研究所淭his is an ongoing effort that relies on a Team Canada approach leveraging business, provincial and territorial governments, and other (partners害羞草研究所�) engagement with U.S. counterparts.害羞草研究所�
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